Follow @Tradergonewild
Been a while since my last update, and I haven't posted any charts for a while. I'm still here. I'm not going anywhere. Gonna eat these pips I've still been trading, and will get my charts up soon. I had to go back to demo trading for a while because my trading was screwing up big time. Losses after losses, losing confidence in my methods, going back and forth between different methods, etc.
What did I do? well firstly I stopped trading for a while and went back to demo trading. In the meantime I backtested 3 different strategies on a few different currency pairs. I back tested each strategy for a period of 1 year to 4 years. The results were very good. Here's the thing though. The winning percentages are not high. between 26% and 47%! I would've still made a very good return becauuse each trade was worth 2:1 RR or 3:1 RR. In other words, my profits were either twice, or three times as big as my risk. Now I never realized that my winning percentage would be that low. See, I was expecting to win 80-90% of my trades and still make 2:1 or 3:1. Of course that never happened, so whenever I did lose a few trades it would fuck me up psychologically. I should've backtested from the very start. My own fault that I wasted so much time, but better late than never. After xmas and new year, I started trading again, with this fresh new outlook.
First trading week of January. I traded only 3 days. Risked 0.5% on each trade. Finished the week with a 1% gain on my account.
Week 2 of January. Made 7 trades. 3 losses, 1 break even and 3 wins. Two of those wins were 2:1 RR, and the other one was 3:1 RR. Risking 0.5% on each trade, my return for the week was a 3% gain on my account. The first 3 trades were break even, then two losses. I still ended the week well up. Badass. Just badass. That's how it should be. The losses didn't bother me.
Week 3 (this week that's just gone). 9 trades. 8 losses, 1 break even and one trade that is still open with stop at break even. Bad week. The thing is though I know it can happen, with my method. I know in the long run my strategies all work, so I've just gotta ride out these tough weeks and the good returns will follow. It's fucked up that all the gains I made in the last two weeks were wiped out though. Still, I won't let it bother me. Every trader has to go through this shit. Only the mentally strong make it. Gotta keep pushing forward, backtesting more pairs, recording all of my trades, and posting them here. Will post more trades tomorrow!
Hi mate i went through the same experience, my winning ratio is a bit higher 41% and my Risk is 1 for 1.3 gain. On backtesting after allowing for human error (very very likely), if i was to trade throughout the year i should finish the year with 2500 pips in the positive :)))) which would make me very happy. In the first week of January i made 15% on my account risking 1.5% on each trade, I thought i was GOD, but then disaster struck, i kept following my system but i kept loosing 6 trades in a row a couple of wins and then another 6 trades in a row, needless to say my gains quickly disappeared. Was very tempted to deviate from the system that was proven successful over the long run, would have been a big mistake. I stuck through it and now back on break even territory looking for some good gains for FEB. Always follow the system, because we as humans with all our flaws can not be trusted in the chaotic world of forex without a plan. Looking forward to reading about your journey :).
ReplyDeleteHey Jovan, what a coincidence. I've just written my end of month review for January and that's exactly what happened to me. First two weeks were great, then a crazy losing run, but stuck with it and ended up in profit this month. I can see why trading has so many victims. It's not complicated but it can mess you up emotionally if you let it.
ReplyDelete